Operations

Kenya Lokichar

On May 15, 2020 Africa Oil announced that Tullow Oil Kenya B.V., the operating partner on Blocks 10BB and 13T in Kenya, submitted notices of force majeure to the Kenyan Ministry of Petroleum and Mining on behalf of the joint venture partners in these blocks. See New Release dated May 15, 2020.

Kenya Development Status

ALIGNMENT ON DEVELOPMENT PLAN —EOPS STARTED

Partners and Government agree on phased approach, technical work matured, Early Oil Production System operational and 1st cargo sail-away on 26 August 2019

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PRE-DEVELOPMENT ACTIVITIES PROGRESSING WELL

Completed FEED studies for upstream and pipeline, ESIA on track for submission in Q1 2020, all land gazetted, national Lands Commission surveys for valuation and acquisition under way

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CONTRACTUAL AND FISCAL TERMS

Heads of Terms (HoTs) with government, covering various legal, tax, transportation and regulatory issues were signed in June 2019, FID for Phase 1is now expected in 2H 2020

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REMAINING DELIVERABLESFOR FID

Long-form commercial agreements for upstream and pipeline projects, water supply agreements, finalization and approval of ESIA, pipeline financing, land acquisition and submission and FDP approval

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Kenya Development

First Oil Cargo Heralds Emergence of Kenya as an Oil Exporter
  • First oil cargo sailed away from Mombasa on 26th August 2019
  • Cargo size of 200,000 barrels
  • The ceremony attended by President Kenyatta and Upstream Partners’ senior management
Benefits of the EOPS
  • Current production of 2,000 bopd - restricted by trucking infrastructure
  • Long term evaluation of reservoir performance, which has so far exceeded expectations
  • Development of key road and local infrastructure
  • Critical exercise to align expectations of the central government and local stakeholders
  • Introduce the South Lokichar crude to international off-take markets and support future marketing of crude sales from the full-field development project
"The first export of crude oil by our nation, therefore,marks a special moment in our history as a peopleand as a country"
— President Uhuru Kenyatta

South Lokichar Development Phases